Question
A city government adds street lights within its boundaries at a total cost of $227,500. The lights should burn for at least 7 years but
A city government adds street lights within its boundaries at a total cost of $227,500. The lights should burn for at least 7 years but can last significantly longer if maintained properly. The city sets up a system to monitor these lights with the goal that 97 percent will be working at any one time. During the year, the city spends $52,800 to clean and repair the lights so that they are working according to the specified conditions. However, it spends another $83,000 to construct lights for several new streets in the city. |
a. | Prepare the entries assuming infrastructure assets are capitalized with depreciation recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
Government-Wide Financial Statements Record street lights added. Record depreciation expense. Record cost of cleaning and repairing street lights. Record additional amount spent to add more lights. |
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